The European common pared its earlier advance against majors on fears the second bailout granted to Greece may not be enough to resolve the debt-stricken nations' debt dilemma.

Greece succeeded in securing a second bailout worth 130 billion euros that would prevent Greece from relapsing into default next month after reaching a deal with private sector bondholders and ECB accepted to distribute its profits from bond purchasing.

The bond swap deal saves Greece from defaulting on March 20 as the 14.5 billion euros of debtare restructured after reaching a deal with private-sector creditors that would write off 100 billion euros of debt in return of getting new bonds with longer maturity, where banks and insurers would bare a loss of 70% on the net present value of the debt.

On the flip side, the ECB would distribute profits generated from purchasing Greek securities over the previous two years to euro zone central banks then their governments would pass them on to Greece.

Athens, on the other hand, announced extra spending cuts to trim its debt little bit above the target to 120.5% of GDP by the year 2020.

After optimism that prevailed following the consent of the bailout, doubts rose that the government will not be able to commit to spending cuts, especially as the austerity measures passed by the Parliament were met by a wide rage of protests from Greek citizens, noting that elections are due in April.

In addition, the severe spending reductions would force the debt stricken economy into several years of recession; the thing that raise doubts that Greece will need more bailouts in the coming years, otherwise it will not be able to meet its debt target.

Concerning the EUR/USD pair, it surrendered earlier gains as it dropped from a high of 1.3293 to trade around 1.3230, while the day's low was recorded at 1.3186.

The trading range for today is among key support at 1.3070 and key resistance at 1.3455.

The U.S. dollar, on the other hand, rebounded against a basket of major currencies after dropping the over past three sessions as fears triggered safety demand on the greenback.

The dollar index is currently hovering around 79.08 after rebounding from a low of 78.79.

The USD/JPY continued its rally to trade near to 3-month high around 79.72, where the day's high was seen at 79.84 while the low was touched at 79.53.

The trading range for today is among key support at 78.60 and key resistance now at 81.00.

Moving to the British pound, it slipped versus the greenback as worries in markets damped demand on high-yielding assets. The sterling fell despite a report release today showing that U.K.'s budget squeeze turned to surplus of 7.8 billion pounds in January from December's revised deficit of 14.0 billion pounds.

The GBP/USD is meanwhile trading around 1.5793 after touching a high of 1.5864 and a low of 1.5789.

The trading range for today is among key support at 1.5680 and key resistance at 1.6075.